July 24, 2006

COMPTROLLER WEITZMAN TO SUSPEND MONTHLY
CASH REVIEWS OF PUBLIC HOSPITAL

Citing the Nassau Health Care Corporation’s (NHCC) improved cash position, Nassau County Comptroller Howard Weitzman has announced he will temporarily suspend his monthly reviews of the hospital corporation’s cash balances. 

NHCC announced last week it has received $35 million in reimbursement funds from the state and federal government, effectively bringing the corporation back from the brink of a financial crisis.

Comptroller Weitzman said, "Because of the positive resolution of its Medicaid reimbursement issues, the hospital corporation now has the breathing room to come up with a realistic operating plan.  The $35 million cash infusion eliminates any cash deficit for the NHCC in the near term.  In addition, NHCC will benefit from higher Medicaid reimbursements, providing increased recurring revenues to support its operations in 2006 and thereafter.

“In light of this very significant improvement in the hospital's fiscal landscape, my office will temporarily suspend its monthly review of the corporation's 's cash accounts.  I continue to believe that Nassau should carefully review NHCC's new strategic plan, now being developed, before it considers any increase in county subsidies to the hospital.”  Comptroller Weitzman said that his office will resume its monthly cash review should it become necessary in the future. 

NHCC’s Acting President and Chief Executive Officer, Arthur Gianelli, has released a Preliminary Updated Strategic Plan, prepared with the help of the county’s consultant, Manatt, Phelps & Phillips.  Each year, Nassau County purchases services from NHCC and pays subsidies to it with a combined value of approximately $60 million.  Earlier this year, Nassau County refinanced its share of the historic settlement with big tobacco companies.  Up to $98 million of the monies raised can be used, with the approval of the Legislature, to provide additional subsidies to NHCC.

Comptroller Weitzman released his latest review of the NHCC’s cash balances today, covering the 30 days ending July 14, 2006 – prior to the receipt of the increased inter-governmental funds on July 19.  The full cash report may be read or downloaded at the Comptroller’s Web site, http://www.nassaucountyny.gov/agencies/Comptroller/index.html.

The $35 million in reimbursement payments made to the hospital corporation on July 19 is approximately $14.7 million more than NHCC had anticipated.  

Despite the positive developments, Comptroller Weitzman said, “it remains important that NHCC complete its new strategic plan to ensure its long-term fiscal viability.  NHCC management must take all actions necessary to preserve this vital county healthcare system.”

The Comptroller had reinstated monthly reviews of NHCC’s cash accounts in December 2005, following the corporation’s failure to meet its 2005 budgetary goals.  The report is distributed to the NHCC Board, the County Executive, the Nassau Interim Finance Authority, the County Legislature, and the Comptroller’s Independent Audit Advisory Committee.

The complete audit report may be read or downloaded by clicking the report title below:

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Review of NHCC's Cash Balances as of July 24, 2006